Where to put son's UTMA?

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itboglesthemind
Posts: 36
Joined: Sun Jan 24, 2010 5:50 am

Where to put son's UTMA?

Post by itboglesthemind »

I've got 55k in my son's UTMA. He's 1.5ys old, we live in California and are in the 35%/9.1% tax bracket. We plan to use the UTMA funds for any private schooling (if he goes that way) and/or to supplement the 529 come college time... Either way, more than 10 years from now...

I'm going to spend the next few years building up his 529 as the primary college fund, and am deciding whether or not to put his UTMA funds into a Bogelhead diversified portfolio (70/30), or to invest them in VCAIX (the Vanguard California Interm-Term Tax Exempt Fund) which seems relatively safe as far as interest rates and default potential, and is certainly beneficial considering our tax rate (even in light of the kiddie tax).

Any thoughts?

Thanks!!!
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